Bond yields, Re down

Written by Agencies | Mumbai | Updated: Jun 27 2009, 03:00am hrs
Bond yields fell from their highs to end almost steady on Tuesday, with excess cash in the banking system generating demand even as inflation data showed signs of emerging prices pressures.

The yield on the most traded 6.07%, 2014 bond ended at 6.53%, one basis point below Wednesday's close. It had risen to 6.59% after inflation data showed while prices fell in annual terms, they were rising on a weekly basis. The yield on the 10-year benchmark bond which registered only 35 deals was at 7%, one basis point above its previous close.

Buying is now mainly on account of ample liquidity, but overall the sentiment will remain cautious ahead of the budget, said a senior trader at a state-run bank.

Rupee ended five paise lower at 48.60/61 against the dollar, on emergence of month-end dollar demand and stronger dollar overseas amid bearish local stocks. The domestic currency resumed steady at 48.55/57 a dollar from its last close of 48.55/56 and hovered in a range of 48.73 and 48.49 during the day.